Bitcoin News Today: Leveraged Bullish Bets Get Wiped Out as Crypto Dives and Volatility Soars

Bitcoin and the broader cryptocurrency market continue to face significant turbulence amid mounting concerns over macroeconomic uncertainty and shifting investor sentiment. The past 24 hours saw over $900 million in liquidations across major digital assets, with Bitcoin (BTC) and Ethereum (ETH) accounting for the bulk of the losses. This sharp correction came as BTC dropped below $110,000 for the first time since early July and ETH plunged 8% to $4,375, reversing a recent rally that had pushed ETH past $4,900 for the first time in its history. The sell-off was triggered in part by a large whale unloading 24,000 BTC worth $2.7 billion on Sunday and exacerbated by macroeconomic worries, including delays in expected interest rate cuts by the Federal Reserve [2].

Technical indicators have also worsened for BTC, with its price now below the 100-day simple moving average (SMA) and the Ichimoku cloud—a sign of bearish momentum. This breakdown is reminiscent of earlier selloffs, such as in February when prices fell to $75,000. Key support levels for BTC include $105,390 and the 200-day SMA at $100,928, while resistance remains at $111,592 and $117,416. A failure to reclaim these levels could signal further bearish pressure in the short term [1].

The volatility has also extended to other major tokens. Dogecoin (DOGE) fell more than 10% to $0.208, while Solana (SOL) dropped 8.5% to $186 after reaching a six-month high. XRP also declined nearly 6% to $2.85, with prices stuck within the Ichimoku cloud, indicating a lack of directional momentum. Unlike BTC, however, ETH and SOL continue to trade above their 100-day SMAs and remain in relatively stronger technical positions [1].

The liquidation wave saw ETH traders account for the largest share at $320 million, followed by BTC at about $210 million. Over 817 million of the $903 million in liquidations were tied to long positions—bets that prices would rise—suggesting that leveraged bullish traders are bearing the brunt of the correction. Implied volatility has spiked sharply for both BTC and ETH, with ETH’s daily volatility surging from 41% to 70%, highlighting the heightened risk in the market [1].

The broader macroeconomic landscape remains a key concern for traders. Markets are closely watching upcoming U.S. economic data, including the July Personal Consumption Expenditures (PCE) report and consumer confidence indices, which will influence the Federal Reserve’s next rate decision. A delay in rate cuts could prolong market uncertainty, especially for high-leveraged assets like crypto. Analysts are also keeping a close eye on positioning across futures and options markets, with some noting a defensive shift as implied volatility diverges between BTC and ETH [1].

Source:

[1] Ether, Dogecoin, Bitcoin Plunge Sees $900M in Bullish Bets ... (https://finance.yahoo.com/news/ether-dogecoin-bitcoin-plunge-sees-061624056.html)

[2] Bitcoin, Ethereum and Dogecoin Slide as Crypto ... (https://decrypt.co/336800/bitcoin-ethereum-dogecoin-slide-crypto-liquidations-top-900-million)